Duluth, MN – The Northeast Entrepreneur Fund has received a $2.5 million grant from the John S. and James L. Knight Foundation to launch the Greenstone Group, a new, long-term initiative aimed at cultivating a culture of entrepreneurship and strengthening entrepreneurs in northeast Minnesota and northwest Wisconsin.

Over the next 10 years, the Greenstone Group expects to build the region’s economy by targeting support and resources toward 500 entrepreneurs in the region who are committed to growing their businesses. Groups of 6-10 entrepreneurs will be teamed with professional business coaches and a coordinated network of service providers committed to providing the right services at the right time.

The Greenstone Group is a collaborative venture. With growing list of partners and allies—currently numbering more than 30 economic development, educational and community organizations—the Greenstone Group will work with these organizations to build a systematic and intentional process for increasing the numbers and success level of entrepreneurs in the region. Success will be measured by expansion of locally owned businesses, wealth creation, new markets accessed and job creation.

Long-time Minnesota business executive and consultant Jerry Peterson has been named director of the Greenstone Group. Peterson, most recently president and chief consultant for Duluth-based Norstar Associates Ltd., will lead the initiative.

“The purpose of the Greenstone Group is to increase the number of skilled entrepreneurs and thus build community wealth and employment through the growth of locally owned businesses,” said Mary Mathews, president of the Northeast Entrepreneur Fund. “Our intent is that the Greenstone Group will help foster a culture of entrepreneurship with the help of our partners in business, higher education and community organizations throughout the region.”

“To start, we will recruit 15 to 20 entrepreneurs who have existing businesses and are committed to growing those businesses,” said Peterson. “They will be organized into the first two Greenstone Groups in the first quarter of 2008. A third group will be launched next summer. Our goal is, through coaching, peer support and coordinated services, to help those entrepreneurs increase revenue, identify new markets and create jobs.”

Knight Foundation, a national funder with local roots in Duluth, is providing the grant through its Transformation Fund. “Our founders were newspaper entrepreneurs who believed in building strong communities,” said Polly Talen, Knight Foundation program director for Minnesota.

“The 10-year commitment we are announcing today is unprecedented for Knight and speaks volumes about our confidence in the extraordinary partners coming together to improve the regional economy by accelerating entrepreneurship. Somewhere out there in northeast Minnesota or northwest Wisconsin may be a small business idea so good it could become the next Cirrus … or the even the next Google.”

Additional funding for the launch has been provided by the Blandin Foundation, Minnesota Power, the Lloyd K. Johnson Foundation, and the U.S. Small Business Administration with assistance from Congressman James Oberstar.

The Greenstone Group will be advised by a committee composed of entrepreneurs, service providers, community leaders and education professionals. The founding members of the advisory committee are: Sue Collins, Northeast Higher Education District; Bill Hansen, Sawbill Outfitters (entrepreneur); Elaine Hansen, UMD Center for Economic Development; Andy Lisak, The Development Association; Mary Mathews, Northeast Entrepreneur Fund; Rob West, Area Partnership for Economic Expansion; and Carol Willoughby, Let the Whole World Know (entrepreneur). Governance will be provided by the NEF board of directors.

About the Northeast Entrepreneur Fund

The Northeast Entrepreneur Fund helps people start and grow successful, locally owned small businesses. Its mission is to promote the entrepreneurial spirit and create economic wealth and diversity. In addition to the services of the Greenstone Group, NEF provides training, consulting and financing to emerging and small businesses in northeast Minnesota and northwest Wisconsin.

Since 1989, NEF has helped start, stabilize or expand nearly 1,000 businesses; helped create or retain nearly 2,500 jobs; provided $ 6.8 million in loans to nearly 500 businesses; and served 8,000 people through its training, consulting and lending programs. More than 85% of business owners who receive assistance from NEF are still in business 10 years later.

The Greenstone Group, a new initiative of NEF, seeks to cultivate a culture of entrepreneurship and strengthen entrepreneurs through professional coaching, peer support and coordinated services.

To learn more, visit www.entrepreneurfund.org.

About Knight Foundation

The John S. and James L. Knight Foundation invests in journalism excellence worldwide and in the vitality of the Twin Ports and 25 other U.S. communities. It focuses on projects with the potential to create transformational change. For more information, visit www.knightfoundation.org.

Background on Jerry Peterson

An innovative business leader with more than 30 years of experience in manufacturing and consulting, Jerry Peterson became director of the Greenstone Group, an initiative of the Northeast Entrepreneur Fund, in January 2008. Previously he was president and chief consultant for Norstar Associates Ltd. in Duluth. Minn.; president and CEO of Schmidt Laboratories in St. Cloud, Minn.; and business development consultant for Minnesota Technology Inc., in St. Paul, Minn. He has also served in sales, marketing and general management positions for several other Minnesota businesses.

The Greenstone Group’s initial list of partners and allies includes: